[JoDee]

As far as a 1099, depends on whether it is a recourse loan or non-recourse. Nonrecourse cannot be 1099'd and recourse will be 1099'd. The credit implication is not dependant on the tax status though - hope that helps... I also spoke to a real estate attorney of whom said to me - on taxes you can show it as "debt relief", and you "shouldn't" get hit.... there are always risks no matter what